The Market Hammer: The Candle that Saved Me from Disaster

Damn! How many times have I watched my investments fall like a meteorite and I've been left paralyzed not knowing what to do. Until I discovered this little gem called a hammer candle.

I swear this formation has been my lifeline when everything seemed to be sinking. When you see that small body with a kilometer-long lower wick, it's as if the market is whispering in your ear: "calm down, there may still be hope."

And it is that this candle appears just when we are in the middle of a brutal bearish bleed. The price opens, falls brutally ( and with it, my stomach ), but then... BAM! Buyers enter strongly and push the close near the open. What’s the result? A candle that looks like a hammer, with a long handle and a small head.

The best part is that you don’t need to be a genius at technical analysis to identify it. Just look for a lower wick that is at least twice the length of the body. Although honestly, the longer that wick is, the better the signal tends to be - the markets can be that theatrical.

But be careful, don't rush to buy as soon as you see a hammer. I've fallen into that trap more times than I'd like to admit. Wait for confirmation with a bullish candle the next day. The "smart" ones in the market sometimes draw these patterns to catch impatient novices.

Look at the KMNO and UNI charts... Do you see those formations? They have been brutal turning points. Of course, big platforms will never tell you that these signals also fail... especially when the market is manipulated by whales.

The question is simple: a hammer can be the first sign that sellers are losing strength and buyers are taking control. Or it could be another trap. The difference between winning and losing lies in your patience to wait for confirmation.

It's not magic, it's mass psychology in the form of a Japanese candle.